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tv   Fast Money Halftime Report  CNBC  August 12, 2016 12:00pm-1:01pm EDT

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in a city you might not otherwise go to? we've seen a lot of rio. it's an incredible town that has a lot going for it, and a town that everybody should be rooting for, i think. and brazil in general, in the months and years ahead. guys, a good weekend to all of you. over to metd quartheadquarters half." all right, carl, thanks so much. welcome to the "halftime report." i'm scott wapner. our top trade this hour, market milestone, all three of the major averages reaches new highs together, first time since '99a buy or sell signal? ask our panel for the hour. jim lebenthal, josh brown, jon najarian and kate, good to see you g. to be here. >> all three major averages hitting new highs closing for the first time since '99.
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>> good news, lower on interest rates, clearly a dip lower on yield again today. keeps focus on stocks. also germany's gdp coming in better than expected. that's the biggest economy in europe, is germany, of course, the driver. the fact they are weathering the storm since brexit, that's a very positive sign, even with china decelerating a little bit, i still think germany is bigger, i trut the data more. >> buy signal, sell signal or take a break signal? what do we do here? >> backing and filling higher, i think. i don't look for an explosive move, but keep backing, filling and just stair-stepping higher. >> kate, congratulations on the new gig at black rock. happy to have you back. what's going to work for us now that we've reached yet another milestone? the plays that worked for the year, bond proxies, telecoms, utilities, et cetera, or in the quarter that we've experienced here, the technology stocks, the
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discretionary stocks the material stocks? how's it going to play out. >> let me talk about the broader catalyst the next couples month of. i don't think a huge number on the catalyst side until we get through their quarter earnings and concerns about volatility picking up ahead of the election. a huge amount of political and policy uncertainty not just in the u.s. but around the rest of the world, and so we really want to stick with quality and not just dividend payers but dividend growth stocks to balance our expectation for lower growth in the u.s. >> do you think they'll about rotation? away from what i said are the more macro story of the year or the smaller story of the quarter? what's going to rule the day? do i need to sell out of the proxies and get into more cyclical offensive plays, if you will? >> unless we have a meaningful pick up in? economic activity causing the fed to say, move once not just once, maybe four times in 2017, that is nos our base case.
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that kind of feeling there might be yield in other markets would, i think, drive people to look at more cyclical stocks and stocks that look cheap perp a continuous bid for yield. we want to tell clients not just look for dividend yield but dividend growth. >> jimmy, people looked, as we've looked at new highs, granted, haven't done incredible things in market. yes, ink kramondal high, pause a little, march a few, pause, march a few steps higher. what are we more apt to do now? buy, sell, take a break? >> i think the calendar comes into play. we'll plateau, heading into the back half of august when traditionally a lot of people take vacations, professional money managers, usually like to lighten up a little bit on risk, as kate was saying, you don't have the catalyst of earnings coming to a close with retail earning. having said that, the calendar
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comes into play post-labor day. a lot of people caught on sidelines with too much cash. surprised by the market rally and playing catch-up with indices. >> come into the market? >> in september, any dip money will be thrown, at any dip in the market and support it higher as people chase benchmarks. >> jackson hole in a week? >> couple weeks. 26th. >> a potential catalyst up or down. >> it is. terms of sectors, a potential sector for financials. we've talked about it. most think janet yellen is coming out more hawkish on the margin and certainly the economy data supports that. if that's the case, propelling finances higher. >> tough to get in front of that, though, josh? >> i don't pay attention to that. the most important indicator for stocks is stocks themselves. pay attention to three things. price, internals and earnings. the good news is, all three are headed in the right direction. we've turned the corner as far as the quote/unquote earnings
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recession, now looking at estimates for 2017. somewhere between 125 and 127. and that's without any major economic lift or anything like that. just more of the same. but a reversal in some of the things that hurt earnings going back 2014 through recently. oil price, for example. dollar, for example. so you've got that going for you. meantime, an expanding list of highs versus lows, look at internal, advanced decline headed in the right direction for the new york stock exchange compose it. a healthy percentage of names above 200 day. almost 70% at last count in the spx names and a lot of different sectors, specifically a lot of individual stock stories. large caps, mid caps, with their own thing happening technically. real breakouts, breakouts to levels that are new highs or at least five and ten-year highs where there are no celters. so i think if you can focus on
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those three things, ignore the jackson hole stuff, don't pay attention to brexit stuff that will be your guide as to whether or not that can continue. >> judge, lower longer on interest rates helps out m & a, seeing it play out over and over again. today hewlett-packard, or hpe, going out there and buying up silicon graphics, sgi. you're go to see more and more of that on a daily basis. probably hearing as jim said, this is a time we normally have a lot of folks off on the beach and so forth. yet i'm probably hearing twice as many rumors and a lot of them playing out as far as takeovers now. so i think that's because of that cheap money. that's another thing that provides a catalyst for the market to move higher as people speculate on who some of those acquirers are going to be and the acquires. >> and meryl lynrill lynch how
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risk goes and carries you. stay long risk, but buy volatility. what do you think? >> heck yeah. volatility, so cheap. >> on the vix, 11, 12. >> 1130. >> crazy, as we speak. >> that is crazy cheap. any long-term chart you look at, a time to buy it. insurance, it's cheap. you know, one thing in terms of this rally, yeah it has been a rally. we've broken out to new highs but a few percentage points over the rave we've been in two years. yes, new highs but not a convincing, thorough breakout. >> their point a mini melt-up. their words. in risk ahead of jackson hole, but then -- all of that sort of risk play could peak? that that will be the moment that you have, the potential for a tantrum in the market, because yellen herself will be speaking there? >> the reason i doubt it, is because of the amount of cash on the sidelines. and what that does to professional money managers, particularly going into the fourth quarter. >> not throwing in the money to lose it after, with jackson hole. right?
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>> they won't. there's going to be a desperation coming in in the fourth quarter. happens every time you have a rally nobody believes in, goes late in the year. people are chasing benchmark. that will happen this year. >> jim, a great point here about the sentiment and technicals, there is a lot of cash and a lot of people that are going to need, try and reposition portfolios in the last couple months of the year, but i say the thing that makes us a little more cautious is that the fundamentals are just okay. josh, you said a lot of the bad news is behind us in terms of stronger dollar, and commodity price stability, and that's true, but i think for us to feel really good about the future for, like, the next six quarters we need a sustained improvement in sales growth. pretty good in second quarter. better than expectation, can't be just about cutting costs. >> 55% of u.s. large caps beat on reserve nee expectations and had not been lowered drastically, anything like in 2015. to your point, probably rather see 65 or 70. the question, where is the market trading by the time we're
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in that kind of environment? where sales growth is booming? then you probably at a much higher multiple and that's when you want to get cautious. right now, we're still in this disbelief phase. maybe coming out of the end of it, but you know, historically, if you were waiting for nirvana or goldilocks, you got it, and that was probably the time to sell. >> what about the notion, again, back to the sector conversations. if, let's say, discretionary, for example. but etter performers quarter to date. >> mostly amazon. discretionary. >> with the retail information out this week, forget retail sales today, flat, a bit of disappointment. retail earnings would lead some to believe that this trend of cars and homes as even terry lundgren said yesterday, ceo of macy's, even though on his way out in early '17. now it's our turn. maybe the consume letter come back, early stages of coming back to buy that kind of stuff? >> scott, i want you to be right. i'm in the retail space you know
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that. to be honest, what happened with retail earnings, such a low bar, easy for them to clear the expectations really low. in fact, almost across the board you saw same-store sales decline. beloved jcpennejcpenney, same s growth but outlie. expectations were low. there is still value in that space. you need to see retail sales figure stronger than they have. >> look at department stores, rallied all summer. jim nailed, you know, a lot of that idea, but now they're back at their five-year average valuations, and one of the main boosters in addition to their being very low expectations short interest. take a look at jw nordstrom had a 16% spike in short interest between may 1st and june 1st. that's set up an amazing summer. look at jcpenney, 30% short interest. nobody thought anything could go right there. and it's not that, still losing money, but things weren't quite
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as bad. so one other factor, july had five weekends instead of four. just a quirk in the ent calendar. you maybe pulled out some of the next month's gains and we'll find out in september how august did, but that's something people should be aware of. >> good stuff. a quick break. what else is coming up on the "halftime report." globetrotting. if you think the u.s. is overheated, our experts tell you where to put money to work overseas. plus, our "call of the day." the analyst that says now is the time to buy some of the sporting goods names. his top plays, and our desk's reaction, next. and speaking of sports, we head live to the la coliseum as they prepare for the first football game in that city in 20 years. that and more ahead on the "halftime report," we scott wapner. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades
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sales for july coming in flat. several stocks on the move, their own earnings. jcpenney, smaller than expected loss. jim, you've been on this. >> a couple things going right. to be hon effort, hoping for better. ebitda guide ins higher than they gave. that said, positive same-store sales growth is good. one thing nobody is paying attention to is over the last year reducing debt outstanding by almost 20%. that's actually meaningful. important. the stronger their balance sheet, the stronger on ebitda
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and earnings. i think they're showing good mow mend um going forward. good management with the appliance sales going on. feel good about the stock here. >> so you look at the stock. it's up 20% over a month. 13% in the quarter. a great run. 55% year-to-date. why not take the money and run? >> got more ahead of it. i'm really wrestling with that, scott. exactly the right question to answer and i think more ahead of it. first off, a heck of a volatile stock, you said, up 50% year to date. >> yeah. >> depending where you measure, actually down 15% from intrayear high. >> that's a fair point. >> macy's closing 100 stores. jcpenney closing 15. is that enough? have they shrunk this company enough to make money? >> positive earnings for the year. i think so. usually makes most earnings in the fourth quarter. i don't throw too much sand on the fact they lost money this year. the thing to watch for, balance
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sheet. paying down debt, more goes into equity that versus ebitda will propel the stock higher. >> stay with retail. foot locker, dick sporting goods, under armour, initiated positive. analyst behind the call of the day joins us on the phone. sam, welcome. >> thank you for having me. >> dick sporting goods, number one pick. $65 price target. why do you like it? >> they've been going through a lot of good changes, taking their ecommerce business in-house next year and lowered guidance on the first quarter call. but what is really going on, because of the sports authority liquidation happening or that happened and expected that to run through the third quarter, through back to school, but all of our checks tell us that was over about, right, the second or third week of july, and a bunch of businesses, other retailers inflected on the end of that. plus, dick's picked up the ip. go to -- if you go to
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sports30.com immediately takes you to dickssportinggoods.com. and picked up stores 15sh store. 15 in between florida, and really good ones. >> interesting, intellectual property for sure. under armour. positive initiation. what do i do about valuation? so many questions investors have when deciding whether this is the right stock for them right now. >> first of all, in the initiation i basically says this is the best stock for long-term investo investors, clear about that. look back and say i should have bought the stock now. the key here, and for the other ones as well, very focused on their own brand. their making the right decisions. they move very methodically and are continuing to get very strong growth. and, really, that's the story. if you know any kids that play
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any kind of sports, they are head to toe under armour and going to grow up as we grew up on adidas or nike. we think that's the story going on there. if you're doing this for the next, playing the quarters, i don't necessarily think that's the right stock for you, but it's really a great long-term company, and as long as they stay focused on who they are, stay true to the brand, treat that brand and sacrosanct, one of the best growth stories. >> not disputing you on the kids theme. speaking from experience. and foot locker, a lieding mall-based specialty retailer. doesn't that make me nervous? i thaw the mall is dead? >> i think -- look, you've been in apple store. the apple store doesn't look dead. if you have the right stuff, the consumer wants to be intrigued. want to have new, compelling product, and that's tons of new compelling product in athletic and athletically influenced
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footwear. from nike, under armour, adidas, all doing exceptionally well, and i believe that foot locker does the best job of really communicating with their core customers, and they're never satisfied with anything going on and so continuing to remodel stores putting in new systems. expanding their few new concepts between the women's concept and so on. so we think they execute so well and this athletic trend isn't going anywhere and the kid shows where that stuff is so locker does it the best. >> sam, appreciate the time. thanks for calling in. >> have a great danchy. >> sam poser, thank you. what do you think, doc? >> under armour. of those three. >> why? >> from where it is right now. and from the stealth way hair marketing during the olympics. >> you're a fast trade kind of guy? he's laying it out at a long-term pick.
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>> and i i near term is a harder shoer to tell. >> it is, but more runway under armour after a little correction has gone on. they're up 2% on the week with olympics. track and field starts basically now, judge. as much as they got from michael phelps and some other guys as far as exposure to under armour, from the stealth way that they've been marketing it, which, again, hats off to plank. it's a great strategy and it's paying off. i think they become the bigger winner, but clearly, dick's sporting goods is going to continue to rock. i mean, 30% in the last 90 days. >> right. let me break away. down to d.c. for a moment. we have breaking news on democratic presidential candidate hillary clinton. just releasing her tax returns our john harwood has the latest. >> scott, tax returns for 2015. her returns have previously been released back to 1992. hillary clinton reported that her income with her husband bill clinton was adjusted gross,
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about $10.5 million in 2015. of course, they stopped speaking for money after she entered the race. in terms of speaking fees actually received, bill clinton around $5 million in speaking fees. hillary clinton got $1.4 million. bill clinton got $1.6 million in consulting. she got $3 million as an author. they're effective federal tax rate was 34.2%. charitiable rate, slightly below what was announced in prior years, 9.8%. gave about $1 million to charity and released ten years of tax returns for tim kaine, the vice president candidate, senator from virginia. he had a much more modest income as a united states senator of $313,000 in 2015. he paid an effective federal tax rate of 20.3%, and over ten years, the campaign calculated his rate of charitable giving
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about 7.5%. now, what the clinton campaign is trying to do by releasing these numbers is put pressure on donald trump, who has not released his tax returns. he says he's under a route teen audit and can't release them, or won't release them until that's done. but the clinton campaign is trying to underscore the idea that donald trump may be hiding something by not releasing those returns. we'll see whether the return, the release they've made will succeed in increasing that pressure and cause donald trump to do anything differently. >> john, any opening to criticism for hillary clinton of the speaking fees now that we know what they are? granted, you say they're $1.4 million, $3 million for being an author. how's that going to play now that we have a number? >> well, we had numbers in prior years and it was higher. so i don't think it's all that significant. i mean, hillary clinton can be criticized for the amount of speaking fees she's gotten since
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leaving as secretary of state, and bill clinton as well. and they have been criticized for it. some people made the -- statement that this was -- excessive, in the fees they charged in the amount of speeches for money that they gave, but this new information doesn't change that picture any, and, in fact, it represents a curtailment because smehe's a candidate now. >> harder i guess for mr. trump to criticize something from the clinton tax return and thus open himself up to the questions of, well, you haven't released your own tax return. it sort of -- it moots the argument a bit, does it not? >> well, of course, and that's why they're doing it. is they want to put pressure on donald trump. they're making the -- image out there that donald trump either has a lot less income than he has said, or that he may be
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paying no federal taxes. we know that from some past years, and this has to do with the nature of the real estate business. and what you can write off, that in some past years he has not paid any, had any federal tax liability. they would like to see his tax returns and see if that's true currently, but his determination not to release them, even though there's no legal bargains him - suggests, the impression they want to advance, maybe he doesn't want feel see them. >> yeah. john harwood. josh brown called one of the most important tech companies out there, bought the stock earlier. today popping after posting its best sales growth in nearly five years. what's josh doing now? buying more, selling some? plus treasuries are rallying with a ten-year yield falling to 1.49%. why one trader thinks we're about to test the all-time lows.
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the cnbc number causing estimates to decline to 2.5%. see still quite a wide range there. 1.8 to 3.8%. still a lot of data to come. q2 tracking on that data despite the upward revision to june retail sales. unchanged at 1.1%. let's look at who's where the atlanta fed3.5%. can't see, morgan stanley at 1.9, took half a point off their third quarter gdp estimate. so guys, i hope this is not the erosion of the rebound we were looking for in the third quarter. remember, disappointed badly by half in the second quarter, scotty. >> what do i make of the number, steve and the fact that wall street seemingly once again -- you know where i going with this -- >> i'm ready for it. >> seemingly once again is ahead of the fed by a full percentage point in this case? >> the atlanta fed is not necessarily the fed itself. >> no.
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but you include it. it's important enough. >> i do include it, and a lot of guys on the street include it, by the way. one of the things the atlanta fed has done, another model like everybody else except it's run by the atlanta federal reserve bank. i think this time around -- by the way, the atlanta fed was leading the street in terms of lower than expected numbers. right for a couple quarters. now ahead. so i'm not sure that's the same thing as the street leading the fed when it comes to interest rates which that weren't the days. >> i wonder if we're setting ourselves up, or the fed itself is setting itself up to the overly optimistic. >> i think that's a fair concern here, scott. if you remember what happened in the second quarter. the consumer -- consumer zoomed ahead by 4.2% and every other part of the economy declined. i'm not ready to give up the ghost on growth, but if it's confirmed in august, there's going to be trouble, if the consumer's not growing, business isn't growing, government's
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shrinking, a flat or declining economy. give it one more month, but concern right now about that. >> i mentioned several times already on the show, steve, jackson hole and don't have date in my head. when is that? >> the july 25th and 26th i want to say. >> august. not july. >> a -- two weeks from yesterday, august. >> yeah. >> all right. going to be a big moment. janet yellen herself speaking. thanks. >> my pleasure. >> steve liesman. three trades on three stocks making news today. planet fitness posting strong quarterly results. jimmy? >> a good ipo. stock done well. a lot of momentum. earnings supporting it. i think if you're a momentum player a stock you want to own, on a valuation basis, a little pricey. your a value investor probably not going to own it. >> josh, i don't remember off the top of my head where nvidia was two weeks or so ago. >> 57. >> at 57. >> or 56 and change, and he nailed it. >> okay. >> you hadn't -- originally
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bought the stock. you liked it. liked it on the show. >> yeah. >> now you've bought the stock as of a week or so ago. >> i bought tattle after, a few days after talking about it and staying with it. here's what i think is important about nvidia. without repeating what i said originally, jut the general gist of the stock is it's a semiconductor company that is levered to every single major secular growth trend within technology. wireless and pc are the past. the futch sir going to be things like virtual reality, augmented reality, automated driving, data center. nvidia sits in the center of all this stuff. chip sets, graphic processing units. things that are pretty much required and the best. the core gaming business, scott, is doing very well. they beat on earnings by 3 cents. guided revenuing higher by 16%, way above what poem middle east
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expeeast -- people expected. all other the businesses accelerating and they're there. they deserve the premium evaluation above and beyond the semiconductor space. >> jon, calls in marathon. >> we did. >> yesterday. >> unusual activity yesterday. stocks moving up 2% today. of course, nice pop yesterday, 4% pop plus out of the crude oil contract. wti. wolf research along with raymond james made a nice call on this one back around 13 and change. so it's moving up into the mid-014s. we'll continue to hold. >> and a quick check of the market. all three majors hitting new highs together for the first time since 1999. a day ago. here's your look today. dow given 50 points back. s&p down 3. nasdaq down about 5. sue herera has the latest headlines. >> hi, school. we start in florida where florida governor rick scott is hosting a zika roundtable with community leaders this morning
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in del ray beach saying there are three new nontravel related zika cases in miami-dade county, but also says the health department believes transmissions are taking place in one area which is less than one square mile. russian prime minister medvedev says moscow might be forced to cut diplomatic talks with ukraine. earlier in the week russian president putin accused ukraine of trying to carrious attacks in that reason. and a city hit with multiple air strikes. one knocked a man off his motorcycle. one wednesday said at least five strikes all hit civilian homes and ten people were injured. and a texas man got quite a surprise when he opened his garage. look at that. he took a couple steps in when he saw the head of a 9:00-foot alligator. called police and who in turn
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called in a wrangler to remove the gator where it will be taken now to an alligator farm. i cannot even imagine. that's not a good way to start your day. >> no! wow! sue, thanks. >> honey, there's an alligator! >> oh, my god. all right. sue, thanks. >> gator's good eating, though. >> oh, it's awful! gator meat is not good. it's gamey. >> deep fried, though, sue? >> i suppose anything deep fried it good. you would know better than me. i don't know. >> i don't eat that stuff. >> yeah, right. >> it's friday. >> are you crazy? coming up, the rams officially return to los angeles. live at the coliseum on this big day. officials are expecting near capacity crowds for a preseason game, but football's back in l.a. plus, going global. where does kate morsi see overseas? we're going to break it down next.
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barks bon the "halftime report." black rock, the world's largest asset manager says the best returns might be elsewhere. where? overseas do you like? >> look, this year we've become more constructive on emerge be
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market equities. inflow into em equities in the last 1011 we, 11 weeks. looking for outperformance. i caution a huge hole from redemptions over the last couple years. we're seeing improvement threefold in emerging markets, number one a change in the view on the dollar, which is really helping people feel more comfortable taking risk. a view on policy that it's much more constructive in growth, positive in some biggest emerging market economies and very importantly an improvement in fundamentals. on the earning sides and a solid roe picture after a significant rollover in the last couple years. not just a story about sentiment but also fundamental improvement. >> you don't think the easy man has been made? >> i don't. we haven't seen them rover to
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all-time highs. i think positioning, look at global asset allocators, relatively life. >> i say that, context, ask the question, the eem, emerging markets's etf up since january 20. >> staged a significant rally but also one of the most hated areas of the world for the last few years. just as we're talking about different time periods, look over the tlaft three to five years. you can see this is not gigantic in the grand scheme of things. >> fair. jim? >> one of the areas i hear people talking about in emerging markets, eastern europe in particular. 2345i name there's interesting. tucker, obvious reasons and russian. interest in general? >> turkey is one of the countries screened, cheap relative to its own history but significant structural challenges. i talked about the three reasons to like the asset class, in terms of the dollar and policy and fundamentals, it doesn't tick all of those boxes
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necessarily. so i'd say more cautious when looking at some of the opportunities there. >> josh, brazil? up, its one year high, up 100% since beginning of the year. >> what i love about that. if i told you in january invest in a country where gdp growth is negative for eight consecutive quarters and inflation is 9%. >> and throwing out the president. >> having -- >> you would have said you're crazy. >> a zika epidemic, and people's happiness measured by sentiment surveys where the direction of the country is going have never been lower in recorded history. have an allocation, 3% percent, of your portfolio, you would have thrown me out of your office. it's doubled. laggard em markets, headlines are negative and trends are straight down, the point is that search aware of this. so you know, to try to draw this linear relationship between the
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latest news of a country and what its stock market is going to do is really counterproductive. the more important thing is how bad is sentiment, how low are valuations to account for all of these negatives you're able to site, and oftentimes in a situation like a brazil, even things don't get better, just stop getting worse, there is so much money to be made. so the way we play emerging markets is not to get overly complimented with geopolitical this and that but make sure we have a waiting to the places where a lot of bad news is being priced in and valuations account for that already. >> you like brazil as well? >> we like bra sainld i love the geopolitical this and that. focusing on the macro is a huge reason to take even a longer term look at brazil at this point. yes, multiples expanded considerably even more so than other emerging markets, and brazil is now trading like 2.5 standard deviations above its five-year average but we're finally at an inflection point to get structural reform. we've been waiting for this and think these countries, the big
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chunky emerging markets that are actually engaging structural radio form, brazil one, india roh, interesting once to watch and invest in over the medium term. and sluggish economic data. heading to the future pits for the trade there. our own options expert jon najarian sees something unusual in the health foods space today. should you take a bite into the stock? josh does that. talk about it next. "halftime report" comes back in two minutes. announcer: "halftime report" with scott wapner is "the" place for market-moving interviews. >> you don't call a company a sewer because the company made a mistake. >> announcer: real money -- >> we are short both tesla and solar city. >> announcer: -- real debates. >> people think that globalization has hurt businesses. it's not. it is technology that's hurt businesses. >> competition is a good thing. i don't want to go back to a single marketplace. >> announcer: the most profitable hour of the trading day. >> i love this show! all i do is get to tweet about this show! i'm on the show. this is like the greatest moment
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of my life! >> announcer: the "halftime report." weekdays at noon eastern. it's time to discover that in a lexus suv... ♪ ...there's no such thing as adverse coitions. ♪ come to the lexus golden opportunity sales event this is thpursuit of perfection.
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we've just been hearing you're a digital company, yet here you are building a jete well, ge is digital and industrial. like peanut butter andly m and chse. cops and robbers. yeah. nachos and karate. ahh. not that one so much. the rest were really good. socks and shoes. ok, ricky... tyler mansen hope you can join us at the top of the hour for "power lunch." favorite pix after a very busy week of earning reports in that sector and why ron insana says the bubble boyce, you know who they are, got it all wrong. his take on these all-time highs and we are going to sink our teeth into burger king's new whopperrito.
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the must-see taste test comes your way. first, scott and the "halftime" crew, back to you. >> look forward to hearing from matthew. don't mean to spoil it, but he's the real deal. back to the "halftime report" now. on to treasuries. ten-year yield falling back to below 1.5%. jackie deangelis has more. >> yields falling lower, you mentioned. griz, get your take on this. people wonder if we continue to go lower from here and what this means for the market. >> yeah. i think we do, jackie, because if you look at just the jobs number alone, the fed raises rates. look at the gdp numbers, old and new, look at productivity. today retail soles, a disconnect in the markets now and i don't think investors know what to believe is a true number at this point. bond buyers come in. 146 is the next level of support. through that we could see the all-time lows. >> scott, do you agree or swh somewhat surprised? >> i'm surprised by the move.
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because all we've done, really, in ppi, anyway, give back the increase we saw in june. remember, this month we found out no revision in the june data. so ten-year futures are predictably stuck in a range, 131.26's down excite. 133 even to the upside. above that level, up to 134.08 when it really gets interesting. >> for more on yields and everything else futures head to the website futuresno futuresnow @cnbc.com. otherwise, see you tuesday for the online show and see you then. >> thank you. we'll be there. are you ready for some football? rams gearing up for their physical game in l.a. in decades. what is the financial impact for the city of angels? our jane wells is live at the coliseum with that story on the field. >> reporter: yes! no heels, scott. no heels allowed on the field. just the way i like it. tomorrow an nfl returns to los
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angeles for the first time in over two decades. painting the many rams colors, first time since 1979. talk to jeff fisher after the break. hey gary, what are yodoing? oh h john, i'm connecting our brains so we can sharour amazintrading knowledge. that's a great idea, ere u can share strategi,o ideas, even actual tradesoms th market professionals and thousands of other traders? i know. your brain told brain fore you told my face. mmm, blueberry? tainto the knowledge of other traderon thinkorswim. only at td ameritrade.
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all right. the newly minted l.a. rams getting ready for their first game back in l.a. in more than 20 years with all eyes on how the team will fair both on and off the field. our jane wells had the chance to
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talk to head coach jeff fisher about the upcoming season. jane is down on the field. hey, jane. >> reporter: hey, scott. yeah, i wonder how they're feeling in st. louis right now. there's pretty much good excitement here so far. the rams come back to los angeles tomorrow for the first time in 22 years. they're going to play in a stadium that is almost a century old, as they have a preseason opener against the cowboys. the team has been practicing at uc irvine this week. now, tickets to tomorrow's game are sold out in the stadium that holds well over 90,000 here at the coliseum. in fact, they're going to add seats to accommodate fans. regular season rams tickets are averaging $235, that's almost twice what they were last year in st. louis. so no one, no one feeling the pressure like coach jeff fisher. >> we've been building this team for a number of years now. and we've been competitive. we have to get over the hump. and take advantage over the next couple years and great fan base.
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and once we move into the new stadium, tell you, it's going to be one if not the most impressive sports complexes in the world. >> reporter: do you think you have a sales job in this town? >> no, i'm just the head coach. players play, and we do our best to win games. winning games sells tickets. >> reporter: and that includes having a winning quarterback. looks at this point like top draft pick jar ided goff is not going to start tomorrow. also probably the rams will have to play here in the preseason for maybe three seasons while the owners build their brand new $2.6 billion privately funded state-of-the-art super bowl hosting style stadium closer to the beach, scott. >> jane wells, as always, thank you so much. jane, down on the field for us in l.a. goff's from your old school, right, cal? >> yeah. pick four from the rams from the university of cal berkeley. jeff fisher was my teammate with
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the bears in '81. >> see how they fair in l.a. exciting for those folks. coming up, around the desk for trades on next week's movers but let's first look at the s&p sector heat map. give you a check on how the market's fairing today and what's leading a modest decline for the s&p, or not. maybe. there we go. energy in the green along with utilities. we're back after this. across new york state, from long land to bualo, from rochester to tfr aany to uca,y, creative business inceives,inf, university partnerships, and the lowest taxes decades are eating a ronger econo and thright environment in new york state for busine to thrive. let us help grow your compans tomorr- today
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welcome back. our options expert tracking bullish options activity in a health food maker. >> yeah. >> what is it? >> hain. h-a-i-n, judge. average last week was 1,300 calls a day. it traded 13,000 in the first hour today. a lot of rumors about who may or may not be going after these guys. we'll leave those to the people out there on the net that want to speculate on that. but the activity at the september 55 call strike, calls up 55% just on upside move in the stock, so that's a big bet. now they're trading over 22,000 of those calls alone. 32,000 in total, judge. they're betting that a deal happens and happens pretty quick. >> are you in? >> i am in. both calls and i'm short puts. >> you noticed something earlier as well, just to stay on a theme here. yahoo. >> yeah, look at yahoo.
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>> stock at 52-week high today. >> highest level since june of 2015. >> baba-bounce? >> yes. this is almost -- well, i'll say it, exclusively based on the move we've seen moving as high as it did. >> moved up a lot more than this one moved up. >> yeah. well, these guys just have a piece of baba. >> speaking of alibaba, a big mover this week. josh, what do you do with it? >> i think you stay with it. i've been more constructive on this name than other people. i'm not currently long the stock. i've traded it to the long side. i probably should still be in it, but i just feel strongly that a lot of the issues surrounding the company are things that can be cleared up because deep down this is an amazing business. they essentially have an e-commerce monopoly and now getting into other areas around china. whatever it is, they have the relationships with the government that matter in order to continue to do what they do. >> it's a 13% move over a one-week period.
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earnings season is winding down but big names i want to get to before we run out of here. walmart, jimmy, home depot, tjx. >> still a lot of retailers. >> cisco. >> cisco is the one i've got my eye on. we've been talking about this on the desk that it's really had a good run here. above 31.5 you're really within knocking range of 33, which would be the highest it's been since going back to about 2000. so it's got a lot of momentum. last earnings report was terrific. no reason to expect anything different. that's one i'm long and excited to see how earnings come out. >> josh, deere, a stock you've liked for a long time. >> yep. so historically on earnings either they're inline or even a slight miss, but the stock really whatever selloff happens doesn't last long because i think people understand that we may not be in a recovery for ag. we're certainly in a trough. the big problem with deere is that there's a ton of equipment out there on the market. and it's not being replaced because farm incomes are depressed.
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that's not a forever situation. it's cyclical. and you will not have time to wait for the turn. by the time it turns, the stock will have already anticipated it. >> doc, depot or tjx? >> tjx. and i own it in the portfolio and certainly hoping it has a lot of that magic jimmy was able to catch with jc penney and i was able to catch in macy's. i think it will. and i'm also watching anglo gold real quick just because it has earnings monday and miners have been on fire. >> what about home depot? >> it's been a good stock for a long time, but i don't see much to come from it. i think all the good news is priced into the stock. >> all right. there it is today. we'll be watching that one next week for certain. kate moore. >> yes. >> fed minutes next week. >> yeah. not so much just the retail companies reporting, but also the fed minutes which come out on wednesday. i think it's very important to kind of get a sense for how they're thinking about financial conditions. trade with the dollar is obviously down year-to-date. and also to figure out whether september might be in play. i think this is a critical
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question for sentiment on the markets. >> we mentioned your new gig. you are, what, the chief equity strategist at blackrock now? >> that's right. >> congratulations. >> thank you. >> between now and the end of the year, how optimistic -- well, i guess we got to go actually. sorry about that. my bad. >> okay. >> power starts now. that's it, wapner, your time is up. welcome everybody to "power lunch." 1:00 here in the east. 10:00 a.m. in the west. i'm brian sullivan. on the menu we are hitting the malls. wall street's number one rated retail analyst will give you some of his favorite retail stocks to own right now. also ahead, the three most interesting stocks in what we're calling probably the most profitably boring rally in stock market history. and later on, we're going to sink our teeth into burger king's new whopperrito. that's right. they're bringing it in, we're putting it down. and we're going to give you the honest take

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